5M 's beta =1.60. The stocks current price is $25.75, their most recent dividend was 2.00 and analysts expect this dividend to grow at a constant rate of 3% forever. The T-Bond rate =3%. The E(RMm)=8%. The firms market value of debt = $2 Billion and equity = $6 billion. Their corporate marginal tax rate was 20%. Finally, their 8% coupon debt that matures in 12 years is selling at 107.94 . 1. What is the risk premium of 5M s stock according to the CAPM? 2. What is the expected return of 5M s stock according to the CAPM? 3. What is the expected return of 5M's stock using the constant growth model? 4. What is the expected return of 5M s stock using the firms own yield to maturity and equity risk premium approach? 5. Suppose 5M s cost of equity was 14%, rounded to the whole number, what is their WACC